MEO Australia: Beehive prospect supported by new studies

MEO Australia Limited (“MEO”) (ASX: MEO) advises that the seismic reprocessing and inversion study over the Beehive prospect in WA-488-P (MEO 100%) has now been completed, with very encouraging results.

The seismic inversion results have reinforced the interim reprocessing results (see ASX announcement 14 April 2016) and have enhanced the understanding of the Beehive reservoir and seal units, providing additional confidence regarding the nature of the Beehive prospect.

Beehive is potentially a multi-billion barrel, dual objective, oil prone prospect in the Bonaparte Basin located in 40m water depth next to the producing Blacktip field.

The Carboniferous age objective is a 180km2 isolated carbonate build up with 400m of mapped vertical relief, analogous to the giant Tengiz field in the Caspian Basin. This play type is new and undrilled in the Bonaparte Basin.

Beehive is defined by a tight grid of pre-existing 2D seismic data, which MEO has reprocessed in order to further de-risk the prospect.

The seismic reprocessing and inversion undertaken by MEO over the Beehive prospect provides stronger evidence to support key elements of the Beehive prospect, in particular that the primary reservoir is a Carboniferous carbonate build up and that the overlying seal is a bland, shale prone sequence capable of trapping any hydrocarbons in the substantial structure have been retained.

MEO Managing Director & CEO Peter Stickland commented:

“The Beehive prospect is one of the largest hydrocarbon structures in Australia. Results from the reprocessing and inversion of seismic data across the Beehive prospect have exceeded our expectations. This study has generated multiple data sets, with a dramatic improvement in data quality.

All of the products are pointing in the same positive direction and strengthen our understanding of the likelihood of good reservoir and seal characteristics, which are key elements of the Beehive interpretation. MEO will now proceed to update its risk analysis and characterisation of the Beehive prospect and then seek a farmin partner to fund further exploration of the prospect.”